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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                         )                               
                                                                         
                                         )                               
                                                                         
     In the Matter of                    )   File No. EB-04-IH-0525      
                                                                         
     Blackstone Calling Card, Inc.       )   NAL/Acct. No. 200632080091  
                                                                         
     Apparent Liability for Forfeiture   )   FRN 0014434062              
                                                                         
                                         )                               
                                                                         
                                         )                               


                          MEMORANDUM OPINION AND ORDER

   Adopted: July 13, 2007  Released:  July 13, 2007

   By the Chief, Enforcement Bureau:

   I. INTRODUCTION

    1. In this  Memorandum Opinion and Order ("Order"), based on information
       that Blackstone Calling Card, Inc. ("Blackstone") submitted to the
       Enforcement Bureau ( "Bureau") in response to a December 19, 2005
       Notice of Apparent Liability for Forfeiture ("NAL"), we find that
       Blackstone is not a regulated telecommunications carrier. As a result,
       we cancel the $20,000 forfeiture proposed in the NAL.

   II. BACKGROUND

    2. Blackstone is a Florida-based company that offers various services and
       products to the public, among them a variety of prepaid calling cards,
       including cards with the Blackstone label. On March 30, 2004, Bureau
       staff sent a letter to Blackstone requesting specific information
       relating to its compliance with Section 64.1195 of the Commission's
       rules. Section 64.1195(a) requires that a telecommunications carrier
       that will provide or already provides interstate telecommunications
       service file certain registration information with the Universal
       Service Administrative Company ("USAC").  Blackstone responded to the
       Bureau's inquiry letter by providing an unsupported statement that
       "Blackstone Calling Card, Inc. is not a carrier" and thus not required
       to comply with Section 64.1195. In response to a Bureau Letter of
       Inquiry ("LOI") , Blackstone failed to provide sufficient information
       to support this claim.

    3. On December 19, 2005, the Bureau issued an NAL against Blackstone
       finding that Blackstone had apparently violated Commission orders by
       willfully and repeatedly failing to respond to Bureau directives to
       provide information and documents. Based on the Bureau's review of the
       limited information provided by Blackstone and other information
       available from public sources, the Bureau concluded in the NAL that
       Blackstone appeared to be a carrier and was apparently liable for a
       forfeiture. The NAL ordered Blackstone to file complete responses to
       the Bureau inquiries and, pursuant to section 503(b)(2)(B) of the
       Communications Act of 1934, as amended, (the "Act"), to pay the
       $20,000 proposed forfeiture or file a response within thirty days.
       After receiving the NAL, Blackstone provided information and documents
       demonstrating it was not a regulated entity providing
       telecommunications services at the time of the apparent violation.

   III. DISCUSSION

    4. We first conclude that Blackstone was not a regulated entity providing
       telecommunications services at the time of the apparent violation.
       During the Bureau's investigation Blackstone failed to provide any
       supporting documentation for its claim that it was not a
       telecommunications provider, preventing the Bureau from making a
       timely determination about Blackstone's status. After reviewing the
       materials provided, we are now in a position to evaluate fully
       Blackstone's claim that it was not a regulated entity. Among other
       information, Blackstone submitted copies of contracts between it and
       the telecommunications carriers providing the service underlying
       Blackstone's calling cards. These contracts establish that Blackstone
       was acting as an agent for the carriers by distributing the prepaid
       calling cards and, among other terms, acknowledged that the carriers
       -- not Blackstone -- were responsible for the provision of the
       associated services and the related regulatory obligations. After
       reviewing the documents and other probative information submitted by
       Blackstone, we are now able to determine by a preponderance of the
       evidence that Blackstone was not a regulated telecommunications
       provider at the time of the apparent violations and thus not obligated
       to comply with section 64.1195(a) of the Commission's rules.

    5. Having determined that Blackstone was not a regulated
       telecommunications provider at the time of the apparent violations, we
       find that we were precluded from proceeding with a Notice of Apparent
       Liability without first issuing a citation in accordance with the
       requirements in section 503(b)(5) of the Act. Under section 503(b)(1)
       of the Act, any person who is determined by the Commission to have
       willfully or repeatedly failed to comply with any provision of the Act
       or any order, rule, or regulation issued by the Commission shall be
       liable to the United States for a forfeiture penalty. The Commission,
       however, must first issue a citation in the event a person does not or
       need not hold a Commission authorization at the time of the apparent
       violation. The Commission may impose a forfeiture only if the
       non-regulated company is issued a citation and "subsequently engages
       in the conduct of the type described in such citation." Since we were
       precluded from proceeding with a Notice of Apparent Liability against
       Blackstone without first issuing a citation in accordance with the
       requirements in section 503(b)(5), we cancel the NAL. Given the
       particular facts and circumstances of this case, we exercise our
       discretion by declining to issue a citation against Blackstone under
       section 503(b)(5).

   IV. ORDERING CLAUSES

    6. ACCORDINGLY, IT IS ORDERED THAT, pursuant to sections 4(i), 4(j), and
       503(b) of the Communications Act of 1934, as amended, 47 U.S.C. S:S:
       154(i), 154(j), 503(b), the Notice of Apparent Liability for
       Forfeiture issued against Blackstone Calling Card, Inc. on December
       19, 2005 is hereby CANCELED.

    7. IT IS FURTHER ORDERED THAT a copy of this MEMORANDUM OPINION AND ORDER
       shall be sent, by certified mail/return receipt requested to Steven A.
       Augustino Esq., Kelley, Drye & Warren, LLP, Washington Harbour, Suite
       400, 3050 K Street, N.W., Washington, D.C. 20007-5108.

   FEDERAL COMMUNICATIONS COMMISSION

   Kris Anne Monteith

   Chief, Enforcement Bureau

   See www.blackstoneonline.com.

   See letter from Hugh Boyle, Chief Auditor, Investigations and Hearings
   Division, Enforcement Bureau, to Blackstone dated March 30, 2004 ("March
   30 Audit Letter").

   See 47 C.F.R. S: 64.1195(a). In 1999, to streamline the administration of
   the programs and to ease the burden on regulatees, the Commission
   consolidated the information filing requirements for multiple
   telecommunications regulatory programs into the annual Telecommunications
   Reporting Worksheet. See 1998 Biennial Regulatory Review, Report and
   Order, 14 FCC Rcd 16602 (1999). The next year the Commission revised the
   Telecommunications Reporting Worksheet slightly to collect the additional
   information necessary to achieve its goal of establishing a central
   repository for interstate telecommunications providers by the least
   provider-burdensome method. Carrier Selection Order, 15 FCC Rcd at 16026.
   Carriers required to register must submit a FCC Form 499-A to USAC. This
   requirement to register is essential to the fulfillment of the universal
   service and other program missions because it identifies the company as
   potentially subject to various program requirements and enables the
   program administrators to oversee the company's compliance with those
   requirements. Upon submission of a FCC Form 499-A registration, the
   carrier is issued a filer identification number by USAC, which is then
   associated with further filings by the company and is used to track the
   carrier's contributions and invoices.

   Electronic mail message from Tania Diblin, Legal Assistant, Blackstone,
   dated April 16, 2004.

   See Letter from Luis Arias, Blackstone, to Carla Conover, Investigations
   and Hearings Division, Enforcement Bureau, dated December 20, 2004.

   See 47 U.S.C. S: 503(b)(2)(B); Blackstone Calling Card, Inc. Notice of
   Apparent Liability for Forfeiture and Order, 20 FCC Rcd 19898 (Enf. Bur.
   2005).

   See Response of Blackstone Calling Card, Inc. dated April 20, 2006
   ("Response"), at 2.

   47 U.S.C. S: 503(b)(1)(B); 47 C.F.R. S: 1.80(a)(1); see also 47 U.S.C. S:
   503(b)(1)(D) (forfeitures for violation of 14 U.S.C. S: 1464).

   47 U.S.C. S: 503(b)(5). After a citation has issued, no additional
   citation with respect to the conduct of the type detailed in the citation
   is necessary before notice and penalty proceedings may ensue. Id.

   Id.

   (Continued from previous page)

   (continued....)

   Federal Communications Commission DA 07- 3235

   2

   Federal Communications Commission DA 07- 3235